Skimming pricing is an especially effective pricing technique in highly competitive markets with many firms offering similar products.

Question

Quizplus · Accepted Answer

Skimming pricing is more effective in markets with less competition and where a firm can set higher prices initially for a new or innovative product, capturing the segment of the market that is willing to pay more before lowering prices over time. In highly competitive markets, high prices might drive customers to competitors.

Skimming Pricing Is an Especially Effective Pricing Technique in Highly